Turning the tables on the PPI people?

oldsinger

This is my first post and I'm sure its far too cocky to use it start a new thread - but I wanted to pass on that when I took out a Virgin credit card to get the 14-month interest-free period on balance transfers with 2.98% fee (and 4% fee on bank account top-up), and I did the transfers to the max, the chap on the phone pointed out that their version of (I-wouldn't-normally-ever-buy-it) PPI pays out on a range of "Lifestyle events" -
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Some are unpredictable like bereavement or jury service, but several can be planned for, or at least known about in advance:
- a move of principal house, marriage, baby born, graduation, stop work to go to fulltime education, and divorce;
What you get -
For 3 months, they pay 5% of your balance each month (more precisely, whichever is the greatest of that, your minimum monthly payment, or £30), . So if you have average £10,000 balance for 3 months, that would be a payout of £1,500 - in return for the monthly premium of 0.79%, i.e. £79.00 per month for 3 months = £237 = max profit of £1,263 if you start the cover just before the (say) house move, and stop the cover after the 3rd payment.
There's a max of 2 claims within a year and they won't pay 2 at a time, but as I read it you could get 2 full 3-months claims in 6 months, even if (for instance) you married and moved house in the same week or month.
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I feel sure someone else has covered this before, but if not..
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maybe timing a large balance transfer to closely precede a house move etc would be a wise move...

Moggles_2

Welcome to MSE!

Something tells me we're going to hear a lot more from you in the coming months :rolleyes:

Cheers
M
:beer:

jonesMUFCforever

As with all insurance policies read the terms and conditions first.
I'm sure that they will have thought of your ideas and put hoops in place in front of you - it won't be as simple as you think - but good luck - keep us informed of how you get on.

PBA

Like most policies, I'd imagine there's a "pre-existing" clause in there, so if you knew you were about to move house or have a baby etc. you'd find yourself out of luck with a claim. But then I haven't read the small print...